Bajaj Auto's Board To Consider Buyback Proposal On Jan. 8; Stock Hits Record
The stock jumped as much as 5.92% during the day to Rs 7,059.85 apiece on the NSE after the announcement.
Bajaj Auto Ltd. said on Wednesday that its board of directors would consider a proposal for a buyback of fully paid-up equity shares next week.
The meeting is scheduled to be held on Jan. 8, according to an exchange filing.
The last buyback issue period was from July 4 to Oct. 10, 2022, with an aggregate amount of up to Rs 2,500 crore at a price not exceeding Rs 4,600 per share. It represented 9.61% of total paid-up share capital.
Bajaj Auto's stock jumped as much as 5.92% during the day to an all-time high of Rs 7,059.85 apiece on the NSE following the announcement. It closed 4.82% higher at Rs 6,986.50 per share compared to a 0.69% decline in the benchmark Nifty 50.
The share price has risen 93.46% in the last 12 months. The total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 75.5, indicating that the stock may be overbought.
Twenty-six out of 46 analysts tracking the company have a 'buy' rating on the stock, 12 recommend 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 17.2%.
